Canada is providing a tax credit to those who make home renovations in 2009.
Making renovations to your home can increase the value of your home over the long run. It can also stimulate the economy through hiring construction workers and purchasing goods and materials. Further, green renovations can decrease the amount of energy consumed and reduce the cost of home ownership. Canada has provided the Home Renovation Tax Credit to encourage homeowners to make renovations and stimulate the economy. This incentive is only temporary and may or may not be provided to residents of Ontario and Canada's other provinces in future years.
Instructions
1. Review the renovations that you made to your home between Jan. 27, 2009, and Feb. 1, 2010. Among other things, these may include new flooring, new windows, a home security system or a retaining wall. Keep in mind that general repair and maintenance are not considered renovation.
2. Gather up any receipts, invoices or bank statements related to the renovation(s) made to your home. These receipts can include building materials and the hiring of contractors and other construction workers. You will not need to send these in with your taxes, but you may be required to present them at a later time.
3. Calculate your total expenditures using Schedule 12 and attach that form to your return.
4. Place the total home renovation expenses you calculated using Schedule 12 on line 368 of your Schedule 1, 2009 Federal Tax return. You'll be able to claim 15 percent of the expenditures that exceed $1,000 but do not exceed $10,000. The maximum amount that can be claimed is $1,350.
5. Apply for the credit by sending your completed tax return to the appropriate Canada Revenue Agency regional office or use the agency's electronic Netfile system.
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